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Mincore

Mining Brief - November 2, 2023

1) The International Seabed Authority (ISA), a U.N. body focused on protecting deep international waters, resumed discussions on a proposed regulatory framework for deep-sea mining after an earthquake briefly interrupted the meeting in Jamaica. Pressure has mounted for regulators allowing companies and countries to mine minerals form the ocean bed. The United Kingdom joined nearly two dozen other nations in calling for a ban or moratorium on deep sea mining, stating it won't support licenses until there's sufficient scientific evidence and robust regulations. Delegates from countries supporting a moratorium, including Panama, Switzerland, and New Zealand left Jamaica following the earthquake. Debate during the meeting centered on the creation of a compliance committee and the level of autonomy it should possess. There were also discussions about the potential requirement for unannounced inspections. The push for deep-sea mining is driven by the increasing demand for metals essential for electric vehicles, solar panels, and other clean energy technologies. Proponents argue that deep-sea mining is cost-effective and has a lower environmental impact than land mining. However, scientists caution that less than 1% of the Earth's deep seas have been explored, and deep-sea mining could lead to issues such as light and noise emissions and suffocating dust storms. The ISA has issues 30 explorations licenses, but has yet to issue a provisional mining license.


2) A recent quarterly report from the Vancouver Economic Commission highlights that Canadian mining companies are leading in the adoption if advanced technologies, particularly artificial intelligence (AI). The report, based on 2022 data from Statistics Canada, reveals that 30.9% of mining businesses have embraced advanced technologies, showcasing the highest rate across the industries. Of the implemented technologies, half complied with regulatory standards, including sustainability. AI emerged as the primary technology adopted by businesses in natural resource extraction, with almost one-third of surveyed companies in mining, quarrying, and oil and gas incorporating AI technologies. The common reasons cited for adopting AI were to develop new or improved processes, enhance operations, introduce process flexibility, and reduce costs. AI's application in mining has contributed to making historically dangerous jobs safer, with automation sometimes eliminating the need for human presence at mining sites. Nutrien, based in Saskatoon, successfully mined an entire production wing at its underground Lanigan site without any human presence, utilizing a combination of radar, cameras. advanced sensing systems. and AI-powered technologies to operate a potash boring machine remotely. The report also suggests that the adoption of advanced technologies in the mining industry, including AI, may also be driven by labor shortages.

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